Categories: Blockchain

Here’s Why We Need to Look Beyond Proof-of-Work (PoW)

The reports of Ethereum Classic getting hacked took the entire crypto world by storm. Since Ethereum Classic is employing the famous Proof-of-Work (PoW) consensus algorithm at its core, questions have begun to arise regarding the safety of other PoW employing chains. Not going far beyond, the world’s leading cryptocurrency in terms of market capitalization, bitcoin, is also employing PoW underneath. Does this mean we need to move on from PoW? The answer, probably yes, not just because of the hacking issue, but also due to the energy consumption problem.

The bitcoin network across the globe is using more power right now than the country of Denmark. Miners use heavy-duty hardware in order to perform mining and get rewards. A large amount of electricity is required to run these mining nodes continuously. Besides, the coal-based energy used to run these nodes results in further pollution of our environment. Global warming, hence, might be directly getting worsened as a result of the electricity used for mining. Energy consumption is becoming a serious issue as more and more people are entering the bitcoin ecosystem.

BlockPublisher recently got in touch with Lizzie Parmenter, consultant for Pelicoin, as she shared her views regarding Proof-of-Work. Talking about the question regarding PoW being flawed, she said:

Lizzie: “Proof of Work is energy inefficient, and continuing to rely on this proof could result in friction and centralization down the line.

Proof of Contribution may be a preferable alternative. It does not rely on mining, and instead reaches consensus by gauging useful contributions from users that support the network. Network attacks are prevented due to the astronomical costs of overloading the system.”

As suggested by Lizzie, PoW might result in the problem of centralization in a decentralized network. With more mining power, the chances of solving the cryptographic puzzles in the network increase and as a result, more rewards can be obtained by an entity. This partly integrates the issue of centralization in the network. Besides, in order to run heavy-duty hardware continuously, a lot of energy is needed.

It probably is about time we start to look forward to different alternatives in order to maintain a blockchain network and reach consensus. It’s about time we choose a more eco-friendly and fair network maintenance algorithm instead of PoW.

SEE ALSO: PoW Will Struggle to Grow to Broader Adoption, Claims Michael Zochowski

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: or

View Comments

Published by
Ahsan Khalid
Tags: MiningPoW

Recent Posts

5 Bitcoin T-Shirts That Will Make You Want BTC Like Anything

Still don't own bitcoin? Not a problem but these bitcoin tee shirts will definitely make you own btc and simultaneously…

January 18, 2020

What Role Does Cryptocurrency Play in the Mobile Gaming Industry?

Online gaming is a multi-billion dollar global industry. It is a phenomenon in itself that brought the world of entertainment…

January 8, 2020

2020 Crypto Market Prediction – Cryptos to Watch Out For

It would be fair to say that this year has been the continuation of bear market for almost all of…

December 30, 2019

Crypto Ponzi Scheme Netted $722 Million Worth Funds

Although the crypto market is testing the patience of investors and crypto enthusiasts all over the world, crypto scams and…

December 11, 2019

Cryptocurrency Adoption: A Critical Look at the Mass Market Psyche

In 2017, Bitcoin and altcoin were the subject of incredible media attention, with astronomical prices and widespread speculative sentiment driving…

December 10, 2019

Bitcoin Adoption in Australia and Global Regulations

Bitcoin has gained massive popularity in past few years and with popularity comes scandals. Scams, exchange hacks and illegal activities…

December 5, 2019